The world has witnessed a staggering increase of 95% in the population of crypto millionaires over the past year. This surge is attributed to the exponential rise in bitcoin exchange-traded funds and other crypto assets. A recent report by New World Wealth and Henley & Partners reveals that there are now 172,300 individuals globally who possess over $1 million in crypto assets, a significant jump from 88,200 in the previous year. Notably, the number of pure bitcoin millionaires has more than doubled to 85,400 in this period, signifying the broadening of the crypto-rich community across various wealth segments.
The crypto riches have not only expanded horizontally but also vertically up the wealth hierarchy. The report highlights that there are 325 crypto centimillionaires, individuals holding $100 million or more in crypto assets, and 28 crypto billionaires worldwide. This growth is closely linked to the escalating popularity of bitcoin ETFs, which have amassed over $50 billion in assets since their inception in January. The surge in institutional participation in the crypto market has been a key driver of this trend.
Bitcoin remains a dominant force in the creation of new crypto billionaires. Five out of the six new crypto billionaires minted in the past year owe their wealth surge to bitcoin. The enduring appeal of bitcoin among long-term investors, who accumulate substantial holdings, is underscored by Andrew Amoils, the head of research for New World Wealth. The price of bitcoin has surged by 45% this year, reaching approximately $64,000, in tandem with the overall growth in the market cap of crypto assets, which now stands at $2.3 trillion.
Forbes identifies Changpeng Zhao, the founder of Binance, as the wealthiest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, follows closely with a fortune of $11 billion. Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, the co-founder of MicroStrategy, also feature prominently among the top crypto billionaires. However, it is worth noting that despite the remarkable wealth creation in the crypto space, many assets are still trading below their 2021 peaks.
The expanding acceptance of crypto assets by major asset managers such as BlackRock and Fidelity, supported by the extensive network of brokers at Morgan Stanley, is expected to fuel further wealth generation among large crypto holders. In addition to creating more millionaires and billionaires, crypto is reshaping the geographic preferences of the affluent. An increasing number of crypto-rich individuals are exploring opportunities to relocate to tax-friendly and crypto-friendly jurisdictions.
Henley & Partners reports a notable uptick in inquiries from crypto-wealthy clients seeking alternative residence and citizenship options. To assist these new crypto nomads, Henley has devised a “Crypto Adoption Index” that evaluates countries based on their tax and regulatory frameworks for crypto. Singapore emerges as the top-ranked country on the index due to its supportive banking system, investment climate, and regulatory clarity. Hong Kong, the United Arab Emirates, and the U.S. follow closely in providing conducive environments for crypto wealth accumulation.
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